"Live Tele Films" is a UK base foreign company not having any Indian citizen/ resident of India holding its shares. It has shot a TV film during the year ended on 31-03-2020 entirely on the Indian locations so as to show

Section 9(1) of the Income Tax Act, 1961 states that any income accruing or arising whether directly or indirectly from any business connection in India shall be the income deemed to accrue or arise in India. However, Explanations (a) to (d) to this clause illustrate about the cases which will not be regarded as business connection in India. According to Explanation (d) to this clause, no income shall be deemed to accrue or arise in India through or from operations which are confined to the showing of any cinematograph film in India provided the assessee who is non-resident is; (a) an individual who is not a citizen of India, (b) a firm which does not have any partner who is a citizen of India or who is resident of India, (c) a company which does not have any shareholders who is a citizen of India or who is resident in India. In the instant case, the assessee is a foreign company who does not have any shareholder who is either citizen of India or resident of India and as such no income of the foreign company shall be deemed to accrue or arise in India. Therefore the action of Assessing Officer is not correct in putting to tax income of the company for the Assessment Year 2020-2021 in India.